Solution Far450 - Dec 2014

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SUGGESTED SOLUTION SUGGESTED SOLUTION QUESTION 1

QUESTION 1 a)

a) Gain Gain or losor loss on ths on the sube subseqsequent auent acqucquisitioisition of Jun of Juara Bara Bhh

!" !" "illion

"illion "illion"illion!"!" C

Coonnssiiddeerraattiioon n ttrraannssffeerrrreedd 44880 0 √√ Fair value of net assets on 1/7/13

Fair value of net assets on 1/7/13 !C !C Retained "rofit Retained "rofit 2000 √2000 √1240√1240√ 3322440 0 # # 1155$ $ √√ %%4488&&'' (ain

(ain to to ot)er ot)er *o+"onent *o+"onent of of e,uit- e,uit- && !"

!" "illion

"illion "illion"illion!"!" D

Dr r ..oonnCCoonnttrroolllliinn  iinntteerreesstt√√ 4488& & √√ C

Cr r tt))eer r **oo++""oonneennt t oof f ee,,uuiitt- - √√ & & √√ C Crr nnvveesstt++eenntt√√ 448800√√ %10√ # 1/2  5 +ars' %10√ # 1/2  5 +ars' b) b) Goo#ill on consoliation$Juara Bh Goo#ill on consoliation$Juara Bh !" !" "illion

"illion "illion"illion!"!" C Coonnssiiddeerraattiioon n ttrraannssffeerrrreedd 2255000 0 √√ . .CC %%2255$$##33222200'' 880055√√ 3305 3305 .et assets at date of

.et assets at date of a*,uisitioa*,uisition 1/7/12n 1/7/12  !!CC 22000000√√ R Reettaaiinneedd ""rrooffiitt 11222200√√ 3220 3220 (

(ooooddiilll l oon n **oonnssoolliiddaattiioon n √√ 8855 Goo#ill on consoliation$Ga%ah Bh

Goo#ill on consoliation$Ga%ah Bh

!" !" "illion

"illion "illion"illion!"!" C

Coonnssiiddeerraattiioon n ttrraannssffeerrrreedd 33&&114 4 √√ .

.CC %%4400$$##&&115500'' 2244&&00√√ &074 &074 .et assets at date of

.et assets at date of a*,uisitioa*,uisition 1/1/14n 1/1/14 !

!))aarree**aa""iittaall 44000000√√

Retained "rofit 6/f Retained "rofit 6/f C "rofi

C "rofit %400 √ t %400 √ 9 80 √ 9 80 √ ' # &/12 ' # &/12 √ : √ :   80 √80 √ 14;0 √14;0 √1&01&0 F

F<< aadd==uusstt++eenntt 550000√√

%&150' %&150' >

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Scheule of !etaine &rofit an N'I !" "illion "illion!" Grou( !& !" "illion N'I !" "illion .C at 1/7/12  ?uara >)d

De*rease in .C – ?uara >)d %48&' √805√

.C at 1/1/14  (aa) >)d 24&0 √

!etaine (rofit  Juara Bh

>alan*e 6/f 1240 √

@re %1220'√

20 %75$' 15 √ %25$' 5

C "rofit 240 √ %;0$' 21& √ %10$' 24

!etaine (rofit $ Ga%ah Bh

>alan*e */f %18;0 √ – 14;0 √ 9 80 √ ' # &/12 √ 240 A+ortisation – lease)old "ro" 500/25 # &/12 %10' √

230 %&0$' 138 √ %40$' ;2 !etaine (rofit $ *ira Bh

>alan*e */f 75&5√ >arain "ur*)ase r"B inventor-Dividend re*eiva6le ;0$ # 100 7& √ %04' √ ;0 √ 'SO+& ,-.//0 2-/..

*ira Bh an its subsiiaries

'onsoliate State3ent of +inancial &osition as at 4. June 2.15

!" "illion Non$'urrent 6ssets

@ro"ert- "lant and e,ui"+ent %1208&930;595735' √ 9 500 √  10√ 2140&

(oodill on *onsolidation√ 85

'urrent 6ssets %1&41593385952&5' √ 9 1√35√  04 √ 250&21 

5-77401 Share 'a(ital an !eser8es

rdinar- s)ares 10000 9 1&00 11&00 √√

!)are "re+iu+ 2250 9 1&00 3850 √√

Retained @rofit

t)er *o+"onent of e,uit-  (ain on su6se,uent a*,uisition √ 80;;&&

.C 2;00

Non$'urrent Liabilities %2&509;5091&10' 5210√

'urrent Liabilities %;4309205093500' √25√  ;0 √ 148875 5-77401 %50√ #   25 +ars'

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c0

e6at >)d *annot 6e e#*luded√ fro+ *onsolidation on t)e rounds of dissi+ilar a*tivities √ f a rou" *ontains diverse 6usiness a*tivities relevant infor+ation is to 6e "rovided

6-*onsolidatin √ su*) su6sidiar- and dis*losin additional infor+ation √ in t)e *onsolidated finan*ial state+ent a6out t)e different 6usiness a*tivities of t)e su6sidiar- ie se+ent dis*losure √ %5√ # 1  5 +ars' %GotalB 35 +ars' QUESTION 2 %a' RH+illion

.et "rofit 6efore ta# 720 √

Ad=ust+ents forB

!)are of "rofit of asso*iate *o+"an- %100' √

De"re*iation 350 √

+"air+ent of oodill ;85 √√ *1

>adde6t 10 √

(ain on dis"osal of +a*)ine %35' √ "eratin "rofit 6efore orin *a"ital *)anes 10435 √

%8√ #   4 +ars' *1

(oodill

RH+illion RH+illion

>al6/d 8&1 I3(air3ent √ /,07

A*,uisition √ 1775 >al */d ;40

%6'

(oodill on a*,uisition of Iaut >)dB RH+illion

'T 2-...9

9' .C %25$√#2430' &075

2&075

F<.A 2200942093009140&30 %2430'√√

(oodill %iven' 1775

CG in *as)B 2000+√%1000+√#RH12√' RH800+ill – *as) in su6RH140+ill√RH&&0+ill %8√ #   4 +ars'

%*'

Cash flows from financing activities RH+illion

@ro*eeds fro+ issue of s)are *a"ital √ *2 2;&0 √√√√

ssue of 5$ de6enture √ &00 √

Dividend "aid to non *ontrollin interest √ *4%1;5' √√√

Dividend "aid √ _{*5 %4;;' √√}

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*2 !C

RH+illion RH+illion

>al 6/d 15000

A*, of su6 √ 1000

>al */d 185&0 Ne# issue 9 27.

*2 !@

RH+illion RH+illion

>al 6/d 340

A*, of su6 √ 200

>al */d ;40 Ne# issue √ 5..

*4 .C

RH+illion RH+illion

Di8ien √ 1/07 >al 6/d 2000

A*, of su6 √ &075

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*5 R@

RH+illion RH+illion

Di8ien √ 5// >al 6/d 2220

>al */d 2070 @rofit attri6uta6le √ 34;

QUESTION 4 a)

S3ile Bh

'onsoliate State3ent of &rofit or Loss an Other 'o3(rehensi8e Inco3e +or the :ear ene 4. June 2.15

!";... Revenue %;0000945000' 9 %4;800 # ;/12'  5240 1&7110 Cost of sales %45000921000' 9%18000 # ;/12'  5240 9 120 %74380' (ross "rofit ;2730

n*o+e fro+ ot)er

nvest+ents 1200 9%;00 # ;/12' 1875

>arain "ur*)ase _1500

"eratin e#"enses %137009&000' 9%4500 # ;/12' <De"n

ad=B nil : == %23075'

Finan*e *ost %200092200' 9 %2100 # ;/12' %5775'

!)are of asso*iateJs "rofit %8000 100 ' # 25$ 1;75

@rofit 6efore ta# &;230

Ga#ation _{%780094100' 9%&&00#;/12'} _%1&850'

@rofit for t)e -ear _52380

t)er *o+"re)ensive in*o+e

F< ain on AF! ₄₅₀

Gotal *o+"re)ensive in*o+e 52830

@rofit attri6uta6leB

ners of t)e "arent _42471

.C >*1) _;;0;

52380

Gotal *o+"re)ensive in*o+e attri6uta6le toB

ners of t)e "arent _{42471 9}₄₅₀ _42;21

.C _;;0;

52830 >*1) @rofit for t)e -ear attri6uta6le to .CB

Iau) >)d %12100  120

(ile >)d %1;800 '#;/12 # 44$ _&435

;;0;

$ 400 '#30$ _3474

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>45 ? @ A 1 3arCs)

PKK E#a+inersB Aard t)is ti* if students do not s)o t)e ad=ust+ent for t)e de"re*iation

fro+ t)e sale of e,ui"+ent 6- (ile to Iau)  G)is is a "rea*,uisition sale and s)ould not )ave an- effe*t on de"re*iation

6'

S3ile Bh

'onsoliate State3ent of 'han%es in Equit for the ear ene 4. June 2.15

!& N'I

!";... !";... >alan*e 6rou)t forard _{>*2) 27450} _{%L3' 8;00} Consideration transferred B (ile

%28700 # 30$' _%8&10'

A*,uisition dr t)e -ear _10750

@rofit for t)e -ear _42471

GC for t)e -ear _;;0;

rdinar- dividend "aid _%2500' _{%L4' %400'} >alan*e *arried forard _&7421 _2054;

 

*2 R@ >al 6/f !";...

(r" 6al 6/f 20000

>arain "ur*)ase  Iau) 750 Iau)  6al 6/f 18000 @rea*,uisition %10000' @ost a*,uisition 8000 # 70$ 5&00 Lave 6/f 8000 @rea*,uisition %3500' @ost a*,uisition 4500 nderde"re*iation %1 -r' %100' 4400 # 25$ 27450 L3 .C 6/f !";... Lau%h F< on DA %1/7/2011' &500 R@ fro+ 1/7/2011 to 30/0&/2013 8000 # 30$ 2400 8;00 1100

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L4 Dividends to .C !";... Iau) 1000 # 30$ 300 (ile 500# 20$ 100 400 >1 ? @ A , 3arCs) QUESTION 56>i)a

Haar >)d dis"osed "art of its interest %25$' 6ut retains suffi*ient s)ares √ %&0$' to e#ert *ontrol √ over Ce+"aa >)d after t)e dis"osal date G)erefore t)ere is no *)ane √ in t)e relations)i" as Haar >)d is still t)e "arent √ M retains *ontrol √ of Ce+"aa >)d alt)ou) t)ere is a de*rease √ in t)e *ontrollin interest

% & √ N  +ar ea*)  3 +ars' QUESTION 56>i)b

Lit) t)e de*rease √ in t)e *ontrollin interest of Haar >)d in Ce+"aa >)d t)e non *ontrollin interest ould t)erefore in*rease √ fro+ 20$ √ to 40$ √ after t)e dis"osal date

% 4 √ N  +ar ea*)  2 +ars' QUESTION 56>ii) Haar >)dOs finan*ial state+ent RHO+ill (rou"Os Consolidated finan*ial state+ent RHO+ill @ro*eed 1 √ 1√

Carr-in value of invest+ent 25+ # 25$ %0&25' √√

.et assets on 1/1/2014 45 + # 20$ %0;' √√

(oodill

   √√

(ain on dis"osal 0375 √ 01 √

%10 √ #  +ar ea*)  5 +ars'

QUESTION 56>iii)

t is ne*essar- to *o+"ute for 6ot) Haar >)dOs finan*ial state+ent and t)e rou"Os *onsolidated finan*ial state+ent 6e*ause t)e ain or loss on dis"osal in Haar >)dOs finan*ial state+ent is t)e differen*e 6eteen t)e "ro*eeds re*eived/re*eiva6le √ fro+ t)e dis"osal of interest in t)e su6sidiar- less t)e *arr-in value of t)e assets/invest+ent √√ Hean)ile t)e ain or loss on dis"osal for *onsolidation "ur"oses is t)e differen*e 6eteen t)e "ro*eeds re*eived/re*eiva6le √ less t)e "ro"ortionate a+ount of net assets of t)e su6sidiar- e#istin on t)e date of dis"osal √√ n t)is *ase t)e "arentOs s)are of t)e "ost a*,uisition in*rease √√ in t)e net assets of t)e su6sidiar- )as 6een re*oniPed G)is taes into a**ount t)e related net assets √ of t)e su6sidiar- t)at are 6ein dis"osed of and not =ust t)e *arr-in a+ount of t)e invest+ent √

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QUESTION 5B>i)

G)e 48$ interest in @un*a >)d )eld 6- Ala+ >)d ould 6e suffi*ient √ to ive it *ontrol of @un*a >)d G)is is 6ased on t)e a6solute siPe of its )oldin √ and t)e relative siPe of t)e ot)er s)are)oldins √ in @un*a >)d )i*) ive Ala+ >)d suffi*ient do+inant votin interest √ to +eet t)e "oer *riterion it)out t)e need to *onsider √ an- ot)er eviden*e of "oer

5√ # 1 +ar ea*)  5 +ars

QUESTION 5B>ii)

!erin >)d does not √ )ave "oer over @erdana >)d 6ased on t)e siPe √ of !erin >)dOs votin interest and its siPe relative √ to t)e ot)er s)are)oldins Ga6a) >)d and Hedan >)d =ust need to *oo"erate √ to 6e a6le to "revent √ !erin >)d fro+ dire*tin t)e relevant

a*tivities of @erdana >)d